First-half 2012 net income of $9.9 billion, EPS of $2.41 and
revenue of $49.6 billion not impacted by first-quarter 2012
restatement; second-quarter 2012 balance sheet and capital ratios
also not impacted4

Provided $130 billion of credit3 to consumers in the
first six months of 2012

­ Issued new credit cards to 3.3 million people

­ Originated over 425,000 mortgages

Provided nearly $10 billion of credit to U.S. small
businesses in the first six months, up 35% compared with
prior year

Provided $260 billion of credit3 to corporations in the
first six months

Raised over $460 billion of capital for clients in the
first six months

Nearly $29 billion of capital raised for and credit3
provided to more than 900 nonprofit and government entities
in the first six months, including states, municipalities,
hospitals and universities

Hired more than 4,000 U.S. veterans since the beginning
of 2011

New York, July 13, 2012 - JPMorgan Chase &
Co. (NYSE: JPM) today reported second-quarter 2012 net income of
$5.0 billion, compared with net income of $5.4 billion in the
second quarter of 2011. Earnings per share were $1.21, compared
with $1.27 in the second quarter of 2011. The Firm's return on
tangible common equity1 for the second
quarter of 2012 was 15%, compared with 17% in the prior year.

Jamie Dimon, Chairman and Chief Executive
Officer, commented on financial results: "Importantly, all of our
client-driven businesses had solid performance. However, there
were several significant items that affected the quarter's
results - some positively; some negatively. These included $4.4
billion of losses on CIO's synthetic credit portfolio, $1.0
billion of securities gains in CIO and a $545 million gain on a
Bear Stearns-related first-loss note, for which the Firm now
expects full recovery. The Firm's results also included $755
million of DVA gains, reflecting adjustments for the widening of
the Firm's credit spreads which, as we have consistently said, do
not reflect the underlying operations of the Firm. The Firm also
reduced loan loss reserves by $2.1 billion, mostly for the
mortgage and credit card portfolios. These reductions in reserves
are based on the same methodologies we have used in the past -
the good news is that these reductions reflected meaningful
improvements in delinquencies and estimated losses in these
portfolios. We continue to maintain strong reserves."

Dimon continued: "Since the end of the first quarter, we have
significantly reduced the total synthetic credit risk in CIO -
whether measured by notional amounts, stress testing or other
statistical methods. The reduction in risk has brought the
portfolio to a scale that allowed us to transfer substantially
all remaining synthetic credit positions to the Investment Bank .
The Investment Bank has the expertise, capacity, trading
platforms and market franchise to effectively manage these
positions and maximize economic value going forward. As a result
of the transfer, the Investment Bank's Value-at-Risk and Risk
Weighted Assets will increase, but we believe they will come down
over time. Importantly, we have put most of this problem behind
us and we can now focus our full energy on what we do best -
serving our clients and communities around the world."

Commenting further on CIO, Dimon said: "CIO will no longer trade
a synthetic credit portfolio and will focus on its core mandate
of conservatively investing excess deposits to earn a fair
return. CIO's $323 billion available-for-sale portfolio had $7.9
billion of net unrealized gains at the end of the quarter. This
portfolio has an average rating of AA+, has a current yield of
approximately 2.6%, and is positioned to help to protect the Firm
against rapidly rising interest rates. In addition to CIO, we
have $175 billion in cash and deposits, primarily invested at
central banks."

"The Firm has been conducting an extensive review of what
happened in CIO and we will be sharing our observations today. We
have already completely overhauled CIO management and enhanced
the governance standards within CIO. We believe these events to
be isolated to CIO, but have taken the opportunity to apply
lessons learned across the Firm. The Board of Directors is
independently overseeing and guiding the Company's review,
including any additional corrective actions. While our review
continues, it is important to note that no client was impacted."

Commenting on the balance sheet, Dimon said: "Our fortress
balance sheet remained strong, ending the second quarter with a
strong Basel I Tier 1 common ratio of 10.3%. We estimate that our
Basel III Tier 1 common ratio was approximately 7.9% at the end
of the second quarter, after the effect of the final Basel 2.5
rules and the Federal Reserve's recent Notice of Proposed
Rulemaking."

Dimon concluded: "Through the depth of the financial crisis and
through recent events, we have never stopped fulfilling our
mission: to serve clients - consumers and companies - and
communities around the globe. During the first half of 2012, we
provided $130 billion of credit to consumers. Over the same
period we provided nearly $10 billion of credit to small
businesses, the engine of growth for our economy, up 35% compared
with the same period last year. For America's largest companies,
we raised or lent over $720 billion of capital in the first six
months to help them build and expand around the world. Even in
this difficult economy, we have added thousands of new employees
across the country - over 62,000 since January 2008. In 2011, we
founded the "100,000 Jobs Mission" - a partnership with 54 other
companies to hire 100,000 U.S. veterans by the year 2020. We have
hired more than 4,000 veterans since the beginning of 2011, in
addition to the thousands of veterans who already worked at our
Firm. I am proud of JPMorgan Chase and what all of our employees
do every day to serve our clients and communities in a
first-class way."

In the discussion below of the business segments and of
JPMorgan Chase as a Firm, information is presented on a managed
basis. For more information about managed basis, as well as other
non-GAAP financial measures used by management to evaluate the
performance of each line of business, see page 14. The following
discussion compares the second quarters of 2012 and 2011 unless
otherwise noted.